HomeMy WebLinkAboutA012 - Staff Report dated August 24, 2021, Council Action Form Item No. 16c l
ITEM: 16c
Staff Report
INDOOR AQUATIC CENTER PROPERTY UPDATE
August 24, 2021
BACKGROUND:
On August 5, City staff met with representatives of the Iowa Department of
Transportation (DOT) regarding the property at 122 N. Oak Avenue, which is the
prospective site for the Indoor Aquatic Facility.
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Existing Conditions of 122 N. Oak Avenue
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The DOT representatives reiterated their willingness to sell the property to the City. The
DOT has an adopted policy regarding the disposal of excess property. The process for
disposal of DOT real estate that was not originally acquired for highway purposes differs
from the process for disposal of excess DOT right-of-way.
DOT's policy requires concurrence from several internal DOT bureaus that the property
may be sold. Additionally, DOT must retain an independent appraiser to determine the
fair market value of the property. Once an appraised value has been established, the
DOT notifies state agencies, counties, or cities of the opportunity to purchase the
property, and accepts offers for a period of 30 days. The offer must equal or exceed the
fair market value of the property as determined by the appraisal. Preference is given to
the highest timely offer received by the DOT.
A preliminary appraisal on the 122 N. Oak Avenue property was completed last winter
by an independent appraiser hired by the DOT. This appraisal valued the property at $2
million (land and improvements). Earlier this month, DOT staff retained an appraiser
to complete a more current appraisal. This appraisal is expected to be completed
in September.
Assuming the City of Ames was the successful offeror for the property, the process to
convey the property to the City involves preparing a State Land Patent, a review of
documents by the Iowa DOT General Counsel, a request to the State Land Office to
secure the Governor's signature, recording the State Land Patent, and furnishing the
City with the recorded State Land Patent.
SITE FEATURES AND CONSTRUCTION TIMELINE:
There are two occupied structures on the site: The building in the southeast corner of
the lot houses a computer lab and conference space for the DOT and an office leased to
Iowa Workforce Development (IWD). The DOT's lease with Iowa Workforce
Development ends in mid-2023.
The larger building is referred to as the "North Annex." DOT is undertaking a renovation
project at its main office south of Lincoln Way, which is expected to be completed in
June 2024. Therefore, this building is intended to be used by DOT as "flex space" during
the renovation project, with move-out completed in Fall 2024. The North Annex is served
with a large air conditioning unit located in the parking lot just south of the building.
City staff has discussed the tentative timeline for the Aquatic Facility project with DOT..
Municipal Pool demolished March 2022
Design March — October 2022
Bidding November 2022 — January 2023
Contract Award January — February 2023
Construction March 2023 — June 2024
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In the comingweeks, City staff will continue discussing with DOT how construction an
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possession of the property can work to address DOT's operational needs while making
progress on the Indoor Aquatic Facility construction. It is possible that steps such as
relocating the A/C unit for the North Annex may be required to facilitate construction in
the area south of that building.
Additionally, the construction plans may have to be adjusted to allow the footprint of the
new Indoor Aquatic Facility to fit inside the existing parking and landscaping areas on
the property, avoiding the need to completely clear the site of structures prior to
commencing construction. This staging could provide for the City and DOT to coexist on
the site for a period of time. However, issues such as parking availability, space for
construction materials laydown, noise, and other compatibility issues would need to be
considered.
No direction or feedback is required from the City Council regarding this issue at this
time; City staff will continue to investigate what impact these compatibility issues may
have on construction costs.
For reference, the image below superimposes the potential Aquatic Center layout
presented to City Council in January 2021 over the existing DOT site.
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Existing Site with Aquatic Center Conceptual Overlay
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NEXT STEPS:
City staff will report back to the City Council once the results of DOT's appraisal are
received. Staff will work with the DOT to better understand when the 30-day offer period
for the property would ideally take place. Assuming the bond issuance is authorized, and
the appraisal is within the expected range, City staff will bring back to the City Council a
formal approval of the City's offer for the property.
Staff has consulted with RDG regarding how to approach the environmental evaluation
of the site. RDG's recommendation is to proceed with a Phase I environmental
assessment. This would consist of researching the current and historical uses of the
property, and studying available environmental reports, maps, and regulatory databases
for relevant environmental information. If information of concern is uncovered, a
Phase II environmental assessment can be undertaken, which consists of
sampling for potential contamination.
City staff is requesting the Council's approval to proceed with the Phase I assessment
and other expenses on August 24. If a more extensive Phase II assessment is
necessary, City staff will work with DOT staff to determine what approvals are necessary
to conduct the necessary field testing on the site.
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